Date for diesel subsidy rationalisation has been set, says Rafizi

THE government has set the date for the rationalisation of diesel subsidies, said Economy Minister Rafizi Ramli.

"We have decided on the date and will announce it when the time is right.

“It’s just that the sequencing has to be correct and it is about balancing and reducing the risk of knock-on inflation. We have figured it out,” he said after the launch of the Oil and Gas Services and Equipment (OSGE) Census 2024 here today.

“Sometimes when you reveal your plans too early, that’s when the hoarding will begin.

“They will quickly stock up because they know that in two to three months, the price will increase,” he said.

Rafizi said while people might question why the government does not enforce stricter controls to prevent leakages, it is impossible with only about 2,500 enforcement officers.

In February, domestic trade and cost of living minister Armizan Mohd Ali revealed that three million litres of diesel are smuggled out of the country every day, resulting in daily losses of RM4.5 million.

On May 27, the Finance Ministry announced a diesel subsidy aid programme, allocating RM200 monthly for eligible individuals and smallholders in the agriculture and commodity sectors.

Eligible recipients will receive Budi Madani assistance of RM200 per month in line with the implementation of targeted diesel subsidy. – The Vibes, May 6, 2024.